Factors Affecting IPO Premium Rate of Chinese Listed Companies

DOI

10.2991/aebmr.k.220502.095How to use a DOI?

Keywords

IPO; Premium rate; China; Listed companies

Abstract

With the continuous enhancement of China’s economic strength, the status of China’s stock market in the world market is also gradually rising, and the phenomenon of IPO underpricing in China’s stock market has gradually attracted everyone’s attention. IPO is the activity of an enterprise’s initial public offering of shares. Listing through IPO is the key for an enterprise to successfully realize the financing in the stock market. In the process of IPO, the core problem is pricing. The level of pricing is directly related to the interests of issuers and investors. The most important symbol representing the issue pricing level and the division of interests of both sides is the degree of IPO underpricing. Therefore, this paper focuses on what factors affect IPO underpricing. Through the analysis of China’s stock market, we can infer that the IPO underpricing rate is related to underwriter reputation, venture capital support, manager shareholding, total issuance scale, corporate governance, issuance and listing time interval, ranking of accounting firms undertaking IPO listing, ranking of law firms undertaking IPO listing, market inertia, issuance timing and other factors. By using the linear regression method, this paper finds that the IPO underpricing rate has a strong correlation with these factors, and puts forward some suggestions on some deficiencies in the Chinese market.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Yueheng Wang
PY  - 2022
DA  - 2022/05/16
TI  - Factors Affecting IPO Premium Rate of Chinese Listed Companies
BT  - Proceedings of the 2022 International Conference on Urban Planning and Regional Economy（UPRE 2022）
PB  - Atlantis Press
SP  - 535
EP  - 538
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220502.095
DO  - 10.2991/aebmr.k.220502.095
ID  - Wang2022
ER  -